Keppel AmFELS Inc., the wholly-owned Brownsville, Texas, subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), is on course for a timely delivery of Scorpion Offshore Ltd.'s first jackup drilling rig at the end of May 2007.

The ultra premium Offshore Courageous, is the first of five jackups that Keppel AmFELS is constructing for Scorpion Offshore. The other four are Offshore Defender, Offshore Resolute, Offshore Vigilant and Offshore Intrepid.

"The on-time delivery of Offshore Courageous is crucial to Scorpion Offshore's goal of providing superior solutions to our customers in the ultra-premium jackup market," said Mr. Jon Cole, CEO of Scorpion Offshore, a Bermuda based corporation founded in 2005 to own and operate state-of-the-art offshore drilling rigs.

Mr Ho Cheok Yuen, President and CEO of Keppel AmFELS, said, "Keppel AmFELS and Scorpion Offshore share a win-win partnership. The close collaboration and open communication between the teams are key factors that contributed to the success of the project."

Scorpion Offshore's second rig, Offshore Defender, was launched on March 31, 2007. It is now undergoing final outfitting, installation of drilling equipment and remaining leg sections and commissioning prior to delivery in October 2007.

The third, fourth and fifth rigs, Offshore Resolute, Offshore Vigilant and Offshore Intrepid, will be delivered progressively in 2008.

All five rigs are built to the LeTourneau Super 116 design. With leg lengths of 477 ft, they can drill wells of up to 30,000 ft in water depths of 350 ft. Upon completion, the rigs can be deployed for both international operations as well as deep gas drilling in the Gulf of Mexico.

Apart from the five Scorpion rigs, Keppel AmFELS is also constructing a KFELS Super B Class jackup rig Ocean Scepter for Diamond Offshore, a LeTourneau Enhanced S116 jackup rig Atwood Aurora for Atwood Oceanics and a Sludge Vessel "Red Hook" for New York City's Department of Environmental Protection. Other ongoing repair and refurbishment projects include the Pride Louisiana for Pride Offshore.